The UK economy showed signs of recovery with a 0.4% growth in GDP for May, following stagnation in April.
- Service output was a significant contributor to this growth, with a 0.3% increase, largely driven by retail sales.
- Construction output saw a notable rise of 1.9%, marking its fastest growth in nearly a year.
- Production output experienced a modest increase of 0.2%, with manufacturing led by food and drink sectors.
- Overall, consumer-facing services rebounded, with retail trade as the main growth driver, increasing by 0.9%.
The UK economy demonstrated resilience in May 2024, with the real GDP expanding by 0.4% following a stagnant April. This recovery is reflective of growth across key sectors such as services, construction, and production which collectively stimulated economic activity.
Service output emerged as a pivotal factor in the GDP growth, increasing by 0.3%. Within the services sector, retail sales experienced a robust recovery, surging by 2.9% after a 1.8% dip in April attributed to adverse weather conditions. This revival was a significant indicator of consumer confidence returning to the market.
Construction output reported an impressive increase of 1.9%, the strongest performance witnessed in almost a year. This surge was propelled by intensified activities in house building and infrastructure projects, indicating a revitalisation of the construction industry.
Meanwhile, production output exhibited a slight yet positive increase of 0.2%. The manufacturing sub-sector, particularly the food and drink industries, was a notable contributor to this growth, suggesting a steady enhancement in production capabilities and market demand.
Over the three months leading to May, the UK’s GDP saw an estimated growth of 0.9%, compared with the preceding three months. The services sector was integral to this upward trend, showcasing a 1.1% expansion, with consumer-facing services alone growing by 0.5%. A significant factor in this advancement was the 0.9% rise in output within the retail trade, highlighting the sector’s resilience and adaptability.
The UK’s economic performance in May 2024 reflects significant sectoral growth, notably in services and construction.
